Other things the same, as the price level falls, the exchange rate rises. A rise in...
Other things the same, as the price level falls, the exchange rate rises. A rise in the exchange rate leads to a decrease in net exports.
Group of answer choices
True
False
Homework Answers
Answer-True
A rise in the exchange rate leads to a decrease in net exports because the price of the domestic products is high than the price of the foreign goods.So imports become cheaper than the exported goods.Thus it leads to rise in the exchange rate as net exports and imports decreases.
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Other things the same, as the price level falls, the exchange
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